27 C.F.R. Subpart V—Samples of Spirits
Title 27 - Alcohol, Tobacco Products and Firearms
(a) Samples withdrawn from bonded premises. The proprietor may withdraw spirits without payment of tax, or wine spirits or brandy free of tax, to the proprietor's laboratory, the laboratory of an affiliated or subsidiary corporation, or, if approved by the appropriate TTB officer, to a recognized commercial laboratory for testing or analysis (other than consumer testing or other market analysis) to determine the quality or character of the finished product. The quantity of spirits so withdrawn shall not exceed the amount necessary for conduct of the proprietor's operations. (b) Customer samples. A quantity of spirits not exceeding 1 liter may be furnished to a prospective purchaser for quality testing (other than consumer testing or other market analysis) only if a bona fide written or oral purchase agreement exists which is contingent upon quality approval by the prospective purchaser; except that a sample not to exceed 1 liter may be furnished to a prospective customer for quality testing in anticipation of a purchase agreement if the customer is authorized to receive bulk spirits for industrial use. (c) Research or development. Spirits may be withdrawn without payment of tax for research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials or equipment relating to distilled spirits or distilled spirits plant operations. The amount withdrawn shall be limited to an amount necessary for conduct of the testing, research or development. If the testing, research or development is to be conducted by other than the proprietor, the proprietor shall secure a written statement, executed by the consignee, agreeing that he will maintain records of the receipt, use, and disposition of all spirits received by him and that those records and operations will be available during regular business hours for inspection by appropriate TTB officers. (d) Conditions. (1) Records will be maintained in accordance with §19.766 of all spirits taken or withdrawn under the provisions of this section. (2) Remnants or residues of spirits withdrawn but not used during testing, research or development shall be destroyed or returned to the bonded premises for storage with similar products or entry in the continuous distilling system. (e) Limitation. The appropriate TTB officer shall proceed to collect the tax on any spirits withdrawn under this section which are found to have been withdrawn, used or disposed of in a manner not authorized by this section. (f) Losses. When spirits are lost prior to being used for the authorized purpose, the proprietor shall either pay the tax or file a claim for remission of tax as prescribed by §19.41. (Sec. 201, Pub. L. 86–859, 72 Stat. 1362, as amended, 1382, as amended (26 U.S.C. 5214, 5173)) The proprietor may take samples of spirits for research, development, testing, or laboratory analysis conducted in a laboratory located on the bonded premises of the distilled spirits plant. The applicable purposes, conditions and limitations for samples taken pursuant to §19.701 shall also apply to samples taken as authorized by this section. (Sec. 201, Pub. L. 85–859, 72 Stat. 1362, as amended, 1382, as amended (26 U.S.C. 5008)) When tax is required to be paid on samples: (a) If the proprietor is qualified to defer payment of tax, the tax shall be included in the proprietor's next deferred payment of tax on Form 5000.24. (b) If the proprietor is not qualified to defer the payment of tax, the tax shall be paid on a prepayment tax return on Form 5000.24. [T.D. ATF–219, 50 FR 51388, Dec. 17, 1985, as amended by T.D. TTB–41, 71 FR 5602, Feb. 2, 2006] (a) On each container of spirits to be withdrawn under the provisions of §19.701, the proprietor shall affix a label showing the following information: (1) Purpose for which withdrawn; (2) Kind of spirits; (3) Size and the proof of the sample, if known; (4) If the spirits are removed to other then adjacent or contiguous premises of the proprietor, the name and address of the consignee; (5) The proprietor's name, and plant number; and (6) The date taken. (b) The labeling required by paragraph (a) of this section is not necessary when sample containers bear an approved label pursuant to 27 CFR Part 5 and subpart S of this part and the sample is removed from bonded premises to the general premises of the same distilled spirits plant. (Sec. 201, Pub. L. 85–859, 72 Stat. 1360, as amended, 1362, as amended, 1382, as amended (26 U.S.C. 5206, 5214, 5373)) [T.D. ATF–198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF–206, 50 FR 23952, June 7, 1985]
Title 27: Alcohol, Tobacco and Firearms
PART 19—DISTILLED SPIRITS PLANTS
Subpart V—Samples of Spirits
§ 19.701 Spirits withdrawn from bonded premises.
§ 19.702 Samples used on bonded premises.
§ 19.703 Taxpayment of samples.
§ 19.704 Labels.
